Menlo Park, Calif., USA - March 25, 2014 - Facebook today announced that it has reached a definitive agreement to acquire Oculus VR, Inc., the leader in immersive virtual reality technology, for a total of approximately USD2 billion. This includes USD400 million in cash and 23.1 million shares of Facebook common stock, valued at USD1.6 billion based on the average closing price of the 20 trading days preceding March 21, 2014 of USD69.35 per share. The agreement also provides for an additional USD300 million earn-out in cash and stock based on the achievement of certain milestones.

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Menlo Park, Calif., USA – March 25, 2014

• Acquisition positions Facebook to accelerate Oculus’ growth in gaming, communications and new social experiences

Facebook today announced that it has reached a definitive agreement to acquire Oculus VR, Inc., the leader in immersive virtual reality technology, for a total of approximately $2 billion.

This includes $400 million in cash and 23.1 million shares of Facebook common stock, valued at $1.6 billion based on the average closing price of the 20 trading days preceding March 21, 2014 of $69.35 per share.

Brendan Iribe, CEO, Oculus.Photo courtesy of Oculus

The agreement also provides for an additional $300 million earn-out in cash and stock based on the achievement of certain milestones.

John Carmack, CTO, Oculus.Photo courtesy of Oculus

Oculus is the leader in immersive virtual reality technology and has already built strong interest among developers, having received more than 75,000 orders for development kits for the company’s virtual reality headset, the Oculus Rift.

Nate Mitchell, VP Product, Oculus.Photo courtesy of Oculus

While the applications for virtual reality technology beyond gaming are in their nascent stages, several industries are already experimenting with the technology, and Facebook plans to extend Oculus’ existing advantage in gaming to new verticals, including communications, media and entertainment, education and other areas.

Photo courtesy of Oculus

Given these broad potential applications, virtual reality technology is a strong candidate to emerge as the next social and communications platform.

“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,”said Facebook founder and CEO, Mark Zuckerberg. “Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”

“We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world,”said Brendan Iribe, co-founder and CEO of Oculus VR. “We believe virtual reality will be heavily defined by social experiences that connect people in magical, new ways. It is a transformative and disruptive technology, that enables the world to experience the impossible, and it’s only just the beginning.”

Photo courtesy of Oculus

Oculus will maintain its headquarters in Irvine, CA, and will continue development of the Oculus Rift, its ground-breaking virtual reality platform.

Photo courtesy of Oculus

The transaction is expected to close in the second quarter of 2014.

About Facebook

Facebook’s mission is to give people the power to share and make the world more open and connected.

People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.

The company launched a Kickstarter campaign to help fund development of their first product, the Oculus Rift, a ground-breaking virtual reality headset for immersive gaming.

With the support of top video game companies including Valve, Epic Games and Unity, the Kickstarter was an enormous success, raising over $2.4 million in funding from project backers and supporters around the world.

Founded in 2012, Oculus VR, Inc. is building a next-generation consumer virtual reality platform.

Photo courtesy of Oculus

The company’s first product, the Oculus Rift, is a virtual reality headset that allows you to step inside a digital environment and feel as though you are truly there.

The Oculus Rift provides an immersive, stereoscopic 3D view with an ultra-wide field of view and low latency head tracking that lets you look around naturally in 360 degrees.

The team is currently developing the Oculus Rift in an effort to revolutionize the way people experience interactive content.